Square has begun operations after completing the charter approval process with the Federal Deposit Insurance Corporation (FDIC) and the Utah Department of Financial Institutions.
Square Financial Services is an independently governed subsidiary of Square, headquartered in Salt Lake City, Utah. Its primary purpose will be to offer business loan and deposit products, beginning with underwriting and originating business loans for Square Capital’s existing lending product. Moving forward, Square Financial Services will be the primary provider of financing for Square sellers across the US.
Completing the Square Financial Services executive team are leaders who bring collective deep experience across banking, finance, and lending. Opening Square Financial Services deepens Square’s unique ability to expand access to loans and banking tools to underserved populations. 58% of loans through Square Capital go to women-owned businesses, compared to 17% of traditional loans; and 35% of loans through Square Capital go to minority-owned businesses, compared to 27% of traditional loans, according to Square Capital statistic.
Amrita Ahuja, Square, Inc. Chief Financial Officer and Executive Chairwoman of the board of directors for Square Financial Services, said:
“Bringing banking capability in-house enables us to operate more nimbly, which will serve Square and our customers as we continue the work to create financial tools that serve the underserved. We thank the FDIC and Utah DFI for their partnership enabling us to reach this milestone, and look forward to continuing to expand access to financial services at this critical time for small businesses.”
